Who put digital transformation in my DevOps? (90 mins)

90 minute version, for more background see: http://cote.coffee/bettersoftware/

Transcript

1. Who put digital transformation in my DevOps? Nov, 2018 @cote cote.coffee/bettersoftware 90 1
2. Pivotal: transforming how the world builds software Learn continuously with a focus on customer business outcomes Focus on developer productivity Any Workload, Every Cloud, One Secure Platform Practice discipline, rigor, open to critique 2
3. Enterprises are transforming with Pivotal AUTO & TRANSPORTATION INDUSTRIAL & BUSINESS SVCS. HEALTHCARE & INSURANCE FINANCIAL SERVICES TECHNOLOGY & MEDIA CONSUMER & COMMUNICATIONS
4. 4 Source: http://tirefi.re/ “It takes forever to release new features. We see opportunities to sell to new customers, but we can’t respond to change fast enough.” “We built something for our customers but it doesn’t meet their needs. Users aren’t adopting our product” “We handed off the requirements to IT, but then 6 months later we got a product that didn’t meet our expectations.”
5. Service Delivery → Product Delivery 5 Sources: BMC’s ITIL® Processes & Best Practices documents, 2011 to 2016; "Sky is the Limit for Cloud Foundry at AirFrance-KLM," Nathan Wattimena & Fabien Lebrere, AirFrance-KLM, Oct. 2018.; “Why Change? Small batch thinking,” Coté, Sep. 2018.
6. From 37% availability to $440m in back taxes User-centric, small batch Only 37% of calls answered, shrinking budgets From 2 year to 9 week releases 2m+ users paid $440m in taxes 6 Sources: “‘Your IRS Wait Time is 3 Hours’ - Is Lean Possible in Government?”, Emily Price, Pivotal, April 2017; “Agile Transformation is Product Management,” podcast, Oct 2017; “Minimum Viable Taxes: Lessons learned building an MVP inside the IRS,” slides, Andrea Schneider & Lauren Gilchrist, 2015. See another write-up. Before After
7. 7 Organizing for outcomes
8. Functional organizations are a poor fit for product delivery Optimized for cost & repeatability Requires coordination overhead Locally optimized Elusive responsibly for final outcome Often lacks design & product management 8 ENTERPRISE ARCH DEV INFRA MIDDLEWARE & APPDEV DATA Ent Arch Proj Mgmt Biz An Developer Srv Build Cap Plan Network Ops Mid. Eng. Client SW Dev Svc Govern SW Arch SW Dev Data Arch DBA Change Control Source: “DevOps Who Does What,” Cornelia Davis, June 2017.
9. 9 Mobile payments Mortgage application Mortgage approval Bill pay Transfers ! ! Private or public IaaS "#$ Culture, process, methodology, governance, compensation, etc. Leadership, EAs, etc. Platform Engineers Product teams Corporate strategy, revenue goals, mission, etc. % &' ( ) * ☁ “The Business”
10. 10 We can all agree on pizza!
11. Product centric, balanced teams 11 Source: “Developer & Culture Transformation,” Jason Williams, Dick’s Sporting Goods, s1p 2018.
12. 25+ years later, agile practices are still not standard 12 Source: “Survey Analysis: Agile Now at the Tipping Point - Here's How to Succeed,” Mike West, Gartner, June 2017; Cf. “The 12th Annual State of Agile Report” for more optimistic numbers.
13. From coding 20% of the time coding to coding 90% of the time An agile methodology, proven over 25+ years: Balanced teams w/all roles needed, dedicated to the product Paired programming, & beyond Test-driven Development Short iterations Continuous Integration & Continuous Delivery 13 Source: “Don’t Forget People and Process in Your Digital Transformation,” Allstate case study, March, 2017. Sources: VW.
14. Lean Reducing the risk of building the wrong thing while comfortably changing direction ▪ Minimum Viable Product (MVP) definition ▪ Lean experiments ▪ Identify & test assumptions ▪ Data driven decisions User Centered Design Ensuring the software solves a real problem for real users in a desirable and usable product. ▪ User Interviews ▪ Ethnographic studies ▪ Persona definition ▪ Prototype creation Extreme Programming Building working software at a consistent speed and quality in the face of changing requirements. ▪ Paired Programming ▪ Test-Driven Development ▪ Short iterations ▪ Continuous Integration / Continuous Deployment Development Design Product Management PRACTICES PRACTICES PRACTICES © Copyright 2018 Pivotal Software, Inc. All rights reserved.
15. “The warfighter can’t wait until it’s perfect.” 15 Sources: "How the US Air Force Made Its ISR Network Cheaper to Run and Easier to Upgrade," M. Wes Haga, Oct, 2017; “Air Force Intelligence Unit Goes Agile,” Charles Babcock, Information Week, June, 2017; “Limit upfront analysis by including frequent, real-world feedback from users,” Coté, Nov 2017; sticky-staring team from USAF Kessel Run Group; title quote from Capt. Bryon Kroger, Kessel Run team. With a more agile approach, we pick a place to start and get to a point where you can have an intelligent conversation… a point where the requirements are 80% done and the application is good enough. A [waterfall] mistake could cost $100 million, likely ending the career of anyone associated with that decision. A smaller mistake is less often a career-ender and thus encourages smart and informed risk-taking.” “ “ - M. Wes Haga, US Air Force
16. 16 Source: Lieutenant Colonel Enrique Oti keynote, SpringOne Platform 2017, Dec 2017.
17. 17 8 hours → <2 hours 6 operators → 1 operator 5 years → 120 days → weekly $2.2m project ~$214k/day fuel savings Source: : "Cost of Delay - How PCF Helped Demonstrate the DoD Can't Afford Business as Usual,” Capt. Bryon Kroger & Tory Galvin, United States Air Force, April, 2018; Lieutenant Colonel Enrique Oti keynote, SpringOne Platform 2017, Dec 2017.
18. 18 We’ve always QA’ed in production
19. Platform as a product (aka SRE) Functions Removes toil with automation & programming Stands up & manages the platform Creates shared services/middleware/etc. Consults with initial projects Staffing T-Mobile USA: 8 ops to 300 developers, 11k containers Dick’s Sporting Goods: 6 ops to 120 devs. 19 ! Platform Engineers !
20. Source: "Adopting PCF At An Automobile Manufacturer," Thomas Seibert and Gregor Zurowski, s1p 2017. Removing release management waste 20
21. Standardize & automate with a build pipeline 21 Sources: “Speed Thrills: How to Harness the Power of CI/CD for Your Development Team,” Ben Kamysz & Jared Ruckle, Pivotal, Aug 2017. CI/CD estimate based on the “The 12th Annual State of Agile Report” (2018) and “Survey Analysis: Agile Now at the Tipping Point - Here's How to Succeed,” Mike West, Gartner, June 2017, see also estimates from 2015. (<= 5 days)
22. Standardize on a platform 22 Source: “The Upside-Down Economics of Building Your Own Platform,” Jared Ruckle and Matt Walburn, 2017. Also, “DevOps Who Does What,” Cornelia Davis, June, 2017; “How Platforms Work,” Casey West, August, 2016.
23. Embedded OS (Windows & Linux) NSX-T CPI (15 methods) Java | .NET | NodeJS Pivotal Application Service (PAS) Application Code & Frameworks Buildpacks | Spring Boot | Spring Cloud | Steeltoe Elastic | COTS | Spark Pivotal Container Service (PKS) >cf push >kubectl run Pivotal Services Marketplace Pivotal and Partner Products Open Service Broker API 23 Pivotal Function Service vSphere OpenStack AWS Google Cloud Azure & Azure Stack Coming Soon!
24. 25 Executive sponsorship for us was absolutely critical. Without that we could not have gotten anywhere that we needed to be.” Brendan Aye “ (USA) Source: “Zero to 12 Million,” Brendan Aye, T-Mobile USA, s1p, Dec 2017.
25. 26 We believe that we need to reimagine banking to make banking simple, seamless, as well as invisible to allow our customers to live more bank less.” Siew Choo Soh, DBS Bank “ Leadership (the missing piece)
26. Without persistent, present leadership, nothing will change Precise vision & strategy A sense of urgency Building coalitions Building on small, successes Holding back corporate sappers & nonsense policy Persistent, ongoing mandating, management 28 Source: Leading Change, John P. Kotter, 2012; "Disruption from Within,” Thomas Squeo, West Corporation, May, 2018; “Zero to 12 Million,” Brendan Aye, T-Mobile USA, SpringOne Platform, Dec 2017. (USA)
27. Starting: “pilot low-risk apps, and ramp-up.” 29 Sources: Home Depot meetup, Oct 2015; Humana at CF Summit 2015; “Getting started,” Coté, Oct 2016; Comcast’s Christopher Tretina at SP1 2016; “Cloud-Native at Home Depot, With Tony McCulley”; "Bottom Up Enterprise Transformation," Kyle Campos, CSAA Insurance, CF Summit EU, Oct 2017. Number of AI’s equates to ~130 apps composed on ~900 services. HARD LESS IMPORTANT IMPORTANT EASY
28. USAF Follow-on: ~16 apps in production by 2019 JIGSAW: $2.2m Avoided $391m cost of delay 1 new feature a week, at least 124 days to production, avg. Contacts awarded in 60 days Proven method spreading to other groups Canceled existing $745m contract 30 Oct. 2016 - Whiteboard April 2017 - JIGSAW Dec. 2017 - CHAINSAW March 2018 - RAVEN May 2018 – 5 prod. apps, 8 in dev Jan 2019 – plan for 15-18 prod. apps Note: apps in time is a sampling of public comments. Sources: "Cost of Delay - How PCF Helped Demonstrate the DoD Can't Afford Business as Usual,” Capt. Bryon Kroger & Tory Galvin, USAF, April, 2018; "The U.S. Air Force learned to code - and saved the Pentagon millions," Mark Wallace, Fast Company, July 5th, 2018; Lieutenant Colonel Enrique Oti keynote, SpringOne Platform 2017, Dec 2017.
29. 31 We hire people with the required capabilities and pair them up with the incumbents, and the result is that those capabilities are multiplied across the organization. This is rooted in the simple belief that in order to learn something, you must experience and practice it rather than hear about it in a classroom setting.” Piyush Gupta, DBS Bank “ Source: "In Control: Q&A With DBS CEO Piyush Gupta," Gordon Platt, 2018.
30. Start small with Pivotal, scale with your new capabilities
31. Beyond 10 ways to make coffee: leadership’s role Create a culture of innovation, risk taking, and focusing on people (“users”) Give product teams autonomy, trust, and voice Establish trust by doing what you say, delegating, and celebrating failurelearning. Feedback loop: surveys (ENPS), silence, churn, results. Giving feedback: OKRs, praising process & stories, not just schedule 33 More in work-in-progress book on Leading Digital Transformation, see the culture section.
32. 34 Source: Jonathan Sirlin, Pivotal Conversations #113, Sep. 2018.
33. 36 Sounds great! But no one cares.
34. Focus on cost reductions with un-motivated executives Notes 1: 2017 & 2018 Pivotal customer case studies. n=15. “Process Time” = hands-on work (vs. “total time” being the time to deliver). Note 2: Averages are exclusive of highest and lowest measures. Not 3: savings based on insurance co.’s strategy to move 17 app portfolio to Pivotal Cloud Foundry. Dev:ops ratios: 30:1 (insurance co.), 375:1 (Comcast), 62:1 (Northen Trust). 37% more time coding 37% relative improvement in time spent coding (from 56% to 77%) 21% absolute improvement in time spent coding (from 56% to 77%) 90% faster 61% faster 90% time reduction 87% process time reduction Total time: from 65 to 6 days Process time: from 81 to 11 hours 61% time reduction 82% process time reduction Total time: from 14 to 5 days Process time: from 115 to 21 hours 69% time reduction 74% process time reduction Total time: from 79 to 24 hours Process time: from 34 to 9 hours 69% more efficient Developing Provisioning Operating (Day 2) Releasing Software Development Lifecycle On-going Ops 82% average reduction in ‘path to production’ time (from 84 days to 15 days) E.g.: $7.35m/year E.g.: $4.80m/year Time-to-market
35. Changing is often too hard, so create a new organization CompoZed Labs now handles 40% of Allstate’s software development Road-side assistance app delivered in 6 months o 25k rescues/month o 30 minute wait to 15 o +$10m, +$100m planned 38 Sources: Andy Zitney; “Don’t Forget People and Process in Your Digital Transformation,” Allstate case study, March, 2017; "How Insurance Giant Allstate Is Using Cloud Tech to Build New Businesses,” Barb Darrow, June, 2017; "Allstate Technology Chief Develops The Uber Of Roadside Assistance,” Perer High, Oct, 2017.
36. Cover w/ Image “If that crusty, old .Net developer can do it, anyone can,” transforming people 1. Most people are skeptical for good reasons 2. They enjoy doing IT if it’s rewarding 3. Volunteer based at first, building up peer-to-peer marketing 4. Also, there’s plenty of more comforting IT for grumpy people to work on 39 Source: “Navigating the Sea of ’No’s,’” John Osborn, GAIC, Dec 2017; Dealing with Grumps, Coté, May 2018.
37. 40 Source: "Cost of Delay - How PCF Helped Demonstrate the DoD Can't Afford Business as Usual,” Capt. Bryon Kroger & Tory Galvin, United States Air Force, April, 2018.
38. 41 Internal marketing: Everything, frequently Sources: Pivotal customers; “The Need For Speed: Drive Velocity And Quality With DevOps,” Robert Stroud & Eveline Oehrlich, Forrester, Feb 2017
39. “Digital transformation” == creating better software 50% B2B customer engagement, shipped in 6 months vs. 18. Idea to production In 2 days; fix production incidents in 2 hours. Small teams deploying to production in minutes, not days. Sources: Crafting your cloud-native strategy, Coté, 2017; Air Force story; Mojgan Lefebvre, Liberty Mutual, June, 2017; Interview with Orange’s Xavier Perret, 2017; "A Unifying Foundation for the Customer Journey at Mercedes-Benz," BuiltToAdapt, Apr 2018; Allianz interview, Sep 2016. Modernized app, rolled out 20 countries in 5 months 40% policy strike rate, vs. 20% industry average. 42 40%+ productivity/cost, rebooted member facing app.
40. Source: "Leap of Agile Faith,” Mojgan Lefebvre, SVP & Chief Information Officer, Global Specialty, Liberty Mutual Insurance, June, 2017. A new business in 6 months, doubling avg. sales rate 43
41. 44 “We are uncovering better ways of developing software by doing it and helping others do it.” - The Agile Manifesto, 2001 @cote | cote@pivotal.io http://cote.coffee/bettersoftware/
42. "DevOps is not about what you do, [it's about] outcomes" 45 Source: “2017 DevOps Report,” Puppet, DORA, et.al., July, 2017. See 2018 DORA report for more detail and additional attributes. Transformational Leadership Personal Recognition Supportive Leadership Intellectual Stimulation Inspirational Communication Vision Test and Deployment Automation Continuous Integration Trunk-based Development Shifting Left on Security Loosely Coupled Architecture Empowered Teams Lean Product Management Team Experimentation Working in small batches Gathering and Implementing Customer Feedback Continuous Delivery IT Performance Organizational Performance Non-commercial Performance Gene Kim